Etsy Appoints Kruti Patel Goyal as New CEO - Replacing Depop's Former Head

Etsy Announces CEO Transition

Etsy, the prominent online marketplace, announced on Wednesday the impending departure of its Chief Executive Officer, Josh Silverman, with his tenure concluding by year's end.

Kruti Patel Goyal, currently serving as Etsy’s president and chief growth officer, is slated to assume the role of CEO. Silverman, who has led the marketplace for eight years, will transition to the position of executive chairman.

Goyal's Background and Experience

Goyal dedicated over a decade to Etsy before being appointed CEO of Depop, a social-commerce platform acquired by Etsy four years ago. She has held her present position within Etsy for approximately seven months.

The change in leadership may signal an effort to leverage Goyal’s expertise gained while steering Depop, potentially to reinvigorate Etsy’s growth trajectory.

Recent Performance Challenges at Etsy

Etsy has encountered difficulties in sustaining business expansion. During the third quarter, which concluded on September 30, the platform experienced a 5% decrease in active buyers, totaling 86.6 million compared to the previous year.

A user boycott in July, triggered by the allowance of merchandise featuring “Alligator Alcatraz” branding, further impacted the company.

The number of sellers on Etsy also declined, falling by 10.9% to 5.5 million in the third quarter when measured against the prior year’s figures.

Gross merchandise sales (GMS) for the quarter saw a reduction of 2.4%, reaching $2.4 billion.

Depop's Strong Performance

In contrast to Etsy’s recent challenges, Depop demonstrated robust performance. The platform witnessed a 40% increase in active sellers, reaching 3 million, and a 38% rise in active buyers, totaling 6.6 million.

Depop’s GMS experienced a significant jump of 39.4%, reaching $292.1 million.

Market Reaction

News of the CEO transition and performance reports led to a nearly 9% decrease in Etsy’s share price following the announcement.

Key Takeaways: The leadership change at Etsy comes amidst a period of slowing growth and challenges for the core marketplace, while its acquisition, Depop, continues to thrive.